Home sales bounce back in February

Published: Thursday, March 21, 2013 at 12:20 p.m.

Last Modified: Thursday, March 21, 2013 at 3:29 p.m.

Residential property sales rebounded in Southwest Florida last month, reigniting the busy buying season after a slow start to 2013.

Sustained demand and the dwindling inventory of homes for sale is driving up prices and fueling bidding duels between investors and people looking for homes to live in.

Realtors in Sarasota, Manatee and Charlotte counties sold 983 existing single-family homes in February — a 9.1 percent increase from January and up 11.3 percent from the same month a year ago.

Scoring an even bigger gain in sales were condominiums. The 427 condominium units that changed hands represented a 38 percent increase from January and a 29 percent spike from February 2012.

Single-family sales had dropped 19 percent in January from December, leading some to worry that the sparse inventory had possibly pushed buyers to other markets with more plentiful supplies.

But Roger Piro, president of the Sarasota Association of Realtors, said sales among his members for the first two months of 2013 are 23 percent ahead of last year, when the group posted its fourth-highest sales ever.

"These statistics continue to demonstrate a healthy, energized real estate market," Piro said. "The pending sales figure also indicates strong sales continuing in the near term, so we could see yet another historic sales year."

But the shrinking stock still looms large throughout the region, especially now: March, April and May were the top selling months in Sarasota last year.

Single-family inventory in Sarasota was down to 5 months' supply — the time it would take to deplete the stock — compared with 7.2 months a year ago. Manatee inventory is at 4.5 months, down from 7.1 months, and Charlotte has dropped to 5.7 months from 7 months.

"Inventory is being supplanted by new homes coming on the market," said Peter Crowley, broker and co-owner of the Re/Max Alliance Group in Sarasota. "You still have a slow flow of distressed properties, and coupled with traditional sellers who have re-entered the market, it has helped to absorb some of the demand."

Prices increasing

Sales prices are increasing, in part because large investor groups throughout Southwest Florida are gobbling up homes to convert into rentals.

In the territory covered by the Sarasota Association of Realtors, the median sales price of a single-family home was $184,500 last month, up $17,000 over the year.

"They are being aggressive to ensure they are getting the property," Crowley said of the big investors. "But I don't think that will add to any huge price escalations. It will certainly contribute to prices continuing to rise, but not startling jumps."

Bill Perrault, an agent with Coldwell Banker Sunstar-Morris Realty in Punta Gorda, said prices are climbing in part because fewer, cheaper bank-owned properties are no longer undercutting sales.

"The product that was able to be stolen is not around any more," he said. "Now we're back to what we consider the normal stuff."

Realtors in the Sarasota association's territory sold 229 condos last month, compared with 160 in January and 177 one year earlier. The median price was $173,000, up from $130,000 in January and $150,000 a year ago.

Manatee Realtors closed on 123 condos, up from 97 the prior month and 87 last year. The median price was $102,000, up from $85,000 in January but down from $110,000 in 2012.

Charlotte agents sold 75 condos, up from 52 the prior month and 67 the year before. The median sale price was $117,500, up from $105,000 in January but down from $120,000 in 2012.

Florida prices, sales up

Statewide, agents sold 15,666 existing single-family homes in February, 10.3 percent more than last year, according to Florida Realtors.

The median sales price climbed 12.8 percent over the year to $150,000.

Condo sales statewide totaled 8,028 units, or 7 percent more than last year. The median price was $115,000, 21 percent over last year.

Cash sales accounted for half of the homes sales and more than three-quarters of the condo sales statewide, said Florida Realtors chief economist John Tuccillo.

"We're seeing more new listings, and that trend is turning positive. This is the first sign that low inventories are convincing sellers to come to the market," he said.

Nationwide, sales of previously occupied homes rose in February to their fastest pace in more than three years, and more people put their homes on the market.

That suggests a growing number of Americans believe the housing recovery will strengthen.

The National Association of Realtors reported sales increased 0.8 percent in February from January to a seasonally adjusted annual rate of 4.98 million. That was the fastest sales pace since November 2009, when a temporary home buyer tax credit had boosted sales. The February sales pace was also 10.2 percent higher than the same month a year ago.

Steady hiring and near-record-low mortgage rates have helped boost sales and prices in most markets. The Realtors' group says the median price for a home sold in February was $173,600, up 11.6 percent from a year ago.

More people are also starting to put their homes on the market, which could help sales in the coming months. The number of available homes for sale rose 10 percent last month, the first monthly gain since April.

Even with the gain, the inventory of homes for sale was still 19 percent below last year.

EARLIER: Residential property sales rebounded in Southwest Florida last month, reigniting the busy buying season after a slow start to 2013.

Sustained demand and the dwindling inventory of homes for sale continues to drive up prices and fuel bidding duels between investors and those buying homes to live in.

Realtors in Sarasota, Manatee and Charlotte counties sold 983 single-family homes in February, up 9.1 percent from January and 11.3 percent over the year before.

They also sold 427 condominium units, a 38 percent increase over January and 29 percent more than February 2012.

Single-family sales had declined 19 percent in January from December.

But Roger Piro, president of the Sarasota Association of Realtors, said sales among SAR members for the first two months of 2013 are 23 percent ahead of last year, when the group posted its fourth-highest sales ever.

“These statistics continue to demonstrate a healthy, energized real estate market,” Piro said. “The pending sales figure also indicates strong sales continuing in the near term, so we could see yet another historic sales year.”

But the shrinking stock of existing homes for sale looms large throughout the region. March, April and May produced the top sales in Sarasota last year.

Single-family inventory in Sarasota was down to 5 months — the time it would take to deplete — compared with 7.2 months a year ago. Manatee inventory is at 4.5 months, down from 7.1 months, and Charlotte County has dropped to 5.7 months from 7 months.

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